PNB, Canara, BoB And Indian Bank Pay Rs 9,439 Crore Dividend To Government

The Centre received Rs 9,439 crore in dividends from four major public sector banks on July 29, 2026, as Punjab National Bank (PNB), Canara Bank, Bank of Baroda (BoB), and Indian Bank shared a part of their FY26 profits with their largest shareholder.

Dividend payments from public sector companies and banks are an important source of non-tax revenue for the government. The higher payouts this year also reflect the stronger financial performance of public sector banks, driven by healthy loan growth, lower bad loans and stronger balance sheets over the past few years.

Among the four lenders, Bank of Baroda paid the highest dividend, handing over a cheque of Rs 2,811 crore to the government. The bank had declared a final dividend of Rs 8.50 per equity share for FY26, equivalent to 425 per cent of the face value of Rs 2 per share.

PNB paid Rs 2,416 crore as dividend. The lender had announced a dividend of Rs 2.90 per equity share for the financial year.

Canara Bank contributed Rs 2,397 crore. It had declared a dividend of Rs 4.20 per equity share, representing 210 per cent of the face value of Rs 2 each.

The bank said the dividend followed a strong financial performance in FY26, during which it reported a net profit of Rs 19,187 crore, up 12.69 per cent from the previous year. Canara Bank said in a post on X, “It (the payout) reinforces Canara Bank’s commitment to driving national progress through prudent financial management and creating sustained value for all stakeholders, including the Government of India.”

Indian Bank paid a dividend of Rs 1,815 crore to the Centre for FY26. The bank had declared a dividend of Rs 18.25 per equity share for the financial year.

Union Minister of Finance Nirmala Sitharaman received the dividend cheques from the managing directors and chief executives of the four lenders during separate meetings held on July 29, 2026.

Public sector banks have steadily increased dividend payouts in recent years following improvement in their profitability. After years of grappling with high bad loans and weak capital positions, the sector has reported record earnings over the past few financial years, supported by stronger recoveries, lower provisioning requirements, and sustained loan growth. The higher dividend payments also strengthen the government’s non-tax revenue at a time when it continues to balance capital expenditure with fiscal consolidation.